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Bitcoin has reached all-time highs for four straight days, reaching $99,500 just hours ago. The ongoing rally has fueled intense bullish sentiment in the market, with investors eagerly anticipating Bitcoin’s historic breakout at the $100,000 mark. However, on-chain data suggests that the rally may face challenges as signs of profit-taking emerge.
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Key insights from CryptoQuant reveal that long-term holders (LTHs) are actively spending their Bitcoin, benefiting from gains exceeding 350%. This behavior indicates that some experienced investors are starting to make gains after a violent uptrend. Whale activity and profit-taking by LTHs may temporarily slow the rally, which could lead to a consolidation phase before the next phase higher.
While Bitcoin remains Just shy of the six-figure milestone, he’s examining the market closely Whether it can maintain its momentum or if a pullback is imminent remains to be seen. Consolidation at these levels could provide the basis for BTC to regain its uptrend and break through the psychological barrier of $100,000.
Bitcoin’s rise seems unstoppable
Bitcoin has risen a staggering 45% since November 5, showing relentless upward momentum that appears unstoppable. Despite increased selling activity, demand continues to support the price, pushing Bitcoin to new highs and maintaining its upward trajectory. Market participants are now closely monitoring potential signs of a slowdown or correction as BTC pushes deeper into uncharted territory.
CryptoQuant analyst Axel Adler recently participated X Highlight data It is an important trend among long term holders (LTHs). According to Adler, LTHs are actively spending their Bitcoin, benefiting from profits exceeding 350%. This represents a critical juncture, as these holders are often viewed as market stabilizers, and their selling activity may signal potential shifts in sentiment.
Adler also points out that if Bitcoin’s price exceeds $119,000, LTH’s profits will rise to more than 500%. These unusual profit levels could spark a wave of selling pressure, which could lead to the first major correction after this unprecedented rally. However, he emphasizes that predicting a specific price point for a correction remains just a guess, as there is no D.EThere is a final threshold for determining when LTHs may overwhelmingly exit their positions.
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While the rally shows no signs of slowing down, this dynamic between demand and LTH profit-taking underscores the importance of monitoring market behavior. Traders should remain cautious as Bitcoin’s meteoric rise develops.
BTC is about to reach $100,000
Bitcoin is trading at $98,600, less than 2% of the highly anticipated $100,000 mark. This psychological level is expected to be an important supply area, as many investors are closely monitoring price movements around this important event. The recent “bullish” price action has left little room for traders to buy at lower levels, frustrating those who were hoping to accumulate during the dips.
If Bitcoin settles above the crucial support level of $93,500 in the coming days, market sentiment suggests that a strong rally above $100,000 could follow. A break of this barrier will likely lead to further upward momentum, pushing Bitcoin into uncharted territory and fueling optimism for additional gains.
However, failure to hold the support at $93,500 could trigger selling pressure, sending the price lower. In such a scenario, Bitcoin may test lower demand areas, with the $85,000 and $80,000 levels identified as key levels to watch. These areas can provide new accumulation opportunities for investors looking to take advantage of price corrections.
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As Bitcoin approaches this historic level, the next few days will determine whether the market will maintain its upward trend or enter a consolidation phase. Traders and investors must remain vigilant as BTC navigates this critical juncture.
Featured image by Dall-E, chart from TradingView
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